Investors increasingly see benefits from integrating sustainable investing into their portfolios, according to the latest Investor Sentiment survey by UBS.
The survey, which polled 3,004 investors and 1,202 business owners across 15 markets globally, found that a majority of investors expect sustainable investing returns to match or exceed those of traditional investments. Some 69% are seeking advice on increasing their portfolio allocation.
In addition, the survey found that a majority of investors remain optimistic about their region’s economy (67%) and the stock market (63%) over the next 12 months, but are increasingly concerned about tax increases, climate change and their country’s politics.
“Investors continue to remain optimistic about the economy and markets, and many plan to increase exposure to risk assets, including a focus on sustainable investments,” said Tom Naratil, President of UBS Americas and Co-President of UBS Global Wealth Management.
“With climate change a top concern for investors, many will focus on the progress made at the UN Climate Change Conference (COP26) and any agreed new measures.”
Business owners remain confident about their businesses over the next 12 months, despite acknowledging that in the past six months the vast majority have experienced weaker customer demand, challenges with recruiting and retaining employees, and wage inflation.
Many owners have adjusted by offering more flexible hours and work locations amid a tight labour market, and 66% said they had increased their employees’ base pay.
Iqbal Khan, President of UBS Europe, Middle East and Africa and Co-President of UBS Global Wealth Management, commented: “Throughout the pandemic, business owners faced many workforce challenges and had to adjust to meet the needs of their employees and customers.
“It’s encouraging to see that a majority of business owners remain optimistic and interested in hiring and investing more in their companies over the next 12 months.”
Case study: OIF2
UBS cites Oncology Impact Fund 2 (OIF2), which will create and invest in private and public companies that develop innovative treatments for cancer and other serious illnesses. The fund will target companies working on breakthrough treatments and therapeutics.
The fund, overseen by MPM Capital’s BioImpact Capital team, will invest 80% of its capital in private companies, with the remaining 20% going towards public companies.
As an impact investment, it will aim to generate a compelling financial return for investors, as well as a positive long-term impact on patients’ lives.
• For more information and to view the report visit ubs.com/investor-sentiment